VAT in Belgium
The initial legislation for modern VAT in Belgium, known as Belasting over de toegevoegde waarde (BTW) or Taxe sur la valeur ajoutée (TVA), was instated on 3 July 1969 and has been amended since (referred to as the “VAT Code”). This legislation marked the incorporation of the European Union Directive 2006/112 into the country’s national law, thus creating a standardized value-added tax system.
While some other tax regulations do not contain a VAT clause, they do feature connected provisions. For instance, certain exemptions from registration tax are tied to transactions exempt from VAT. Additionally, some VAT exceptions are aligned with the customs regime.
Belgium, as a member state of the European Union, has implemented a standardized VAT legislation that aligns with other EU countries.
Selling in Belgium?
The VAT system in the EU is based on two essential principles:
- VAT (Value Added Tax) is a type of general consumption tax.
- The VAT maintains fiscal neutrality.
VAT should be applied to all consumption as a general consumption tax. As a result, exemptions must be rigorously limited and understood.
VAT, being a neutral tax, should not have any impact on business decisions and must treat similar supplies equally. The burden of VAT costs should solely fall on the final consumer while the entrepreneur should be free from it due to the deduction method.
Scope of Taxation
VAT applies to the following categories of transactions:
- Supply of goods or services within Belgium by a taxable entity.
- Intra-Community acquisition of goods from another EU Member State by a taxable entity.
- Specific transactions deemed as taxable services even when offered free-of-charge. An instance is when a business’s assets, where the VAT was partially or fully deductible, are used for personal purposes by a taxable individual.
- Reverse-charge transactions, specifically from companies not established within the region to companies that are either established or under global fiscal representation.
- Importation processes, referring to the entrance of goods not in free circulation within the EU, provided it occurs in Belgium.
Taxable persons include:
- Autonomous entities engaged in economic activities.
- Non-commercial organizations like public bodies engaged in activities with commercial worth.
Belgium – General VAT information
| Tax Authority | Belgian Ministry of Finance |
| VAT in local language | Belasting over de toegevoegde waarde (BTW) / Taxe sur la valeur ajoutée (TVA) |
| Currency | € Euro |
| VAT number format | BE+10 digits |
| BE0999999999 | |
| VAT rates
|
Standard 21%; Reduced 12% & 6% |
| Zero-rated (0%) and exempt | |
| Thresholds | |
| Registration | |
| Established | EUR 25.000 |
| Non-established | None |
| Intra-Community acquisitions | None |
| Intra-EU Distance sales and electronically supplied services to consumers (OSS) | EUR 10.000 |
| VAT Group | The formation of a VAT group or also known as “btw-eenheid” or “l’unité TVA” is allowed in Belgium. It is voluntary and not mandatory and requires a request to be submitted to the VAT Administration. |
| Voluntary Registration | Not Applicable if foreign businesses do not have taxable transaction in Belgium. |
| Recovery of VAT by non-established businesses | Yes |
| Compliance Returns and Deadlines | |
| VAT Return | 20th day following the end of the quarterly or monthly filing period. |
| Frequency | Monthly, Quarterly and annual sales listing (ASL) |
| European Sales Listing | 20th day following the end of the quarterly or monthly filing period. |
| Intrastat | 20th day following the end of the filing period |
| Annual Sales Listing | On or before March 31 of the year following the calendar year in connection with which the filing is madeWhen a company is de-registered, within 3 months after the official de-registration date |
| Electronic Invoicing | While electronic invoicing is not mandatory in Belgium, businesses are obliged to receive and handle electronic invoices for transactions with the government (B2G). |
Last Updated: 17/11/2023
Disclaimer
The information provided by Global VAT Compliance B.V. on this webpage is intended for general informational purposes only. Global VAT Compliance B.V. is not responsible for the accuracy of the information on these pages, and cannot be held liable for claims or losses deriving from the use of this information. If you wish to receive VAT related information please contact our experts at support@gvc.tax